Discussing the Theory of the Leisure Class

The Theory of the Leisure Class by Thorstein Veblen, published in 1899, is a foundational critique of social and economic norms regarding wealth and class. In his time, Veblen criticised contemporary (19th-century) economic theories as intellectually static and hedonistic. He pointed out that economists should take account of how people actually behave, socially and culturally, rather than rely upon the theoretical deduction meant to explain the economic behaviours of society. Veblen argued that the leisure class gains prestige by wasteful displays of wealth and exemption from useful labour. Today, this manifests more through social media performance, luxury branding, experiences, and increasingly subtle or “moral” signals.

The theory fits current patterns strongly, especially among Millennials and Gen Z, though it has mutated. Start with social media amplification: platforms like Instagram and TikTok turn everyday life into a continuous status display. Travel photos, designer items, fitness routines, or curated aesthetics serve the same function as Veblen’s “trophies of success.” Nowadays, youth face consumption-focused social media use that correlates with higher materialism. Sustainability, ethical consumption, activism, or intellectual pursuits can function alongside such luxury beliefs or moral expression, becoming markers affordable mainly to those with economic security. Gen Z patterns include younger consumers who drive significant luxury growth while also engaging in “doom spending” (short-term gratification amid economic anxiety) or mixing thrift with selective conspicuous purchases (designer bags, watches).

Readers are conscious of how society in Malta has changed over the past decades, such that the meteoric rise of social media and endemic advertising has exacerbated the drive to improve one’s social standing through consumption. The sustainability of energy and food subsidies and extensive social benefits fires the domestic market in Malta, and a resulting deficit is rolled over into burgeoning national debt. The extremes of conspicuous consumption are found in families whose lavish weddings have many of the negative dimensions cited in the book. They’re willing to trade down—or trade out—on everyday expenses in order to afford meaningful indulgences. Growing up with the emergence and proliferation of social media apps and the World Wide Web, the emerging Gen Z has been named “the first global generation,” with access to everything at just one click of a button. Access to advanced AI tools, skill in prompting, or the ability to leverage AI for creative/professional advantage can itself become a form of distinction. At the same time, AI-driven job growth in tech and related fields creates new wealth cohorts whose consumption patterns fit Veblenian logic.

Pair this with the global economic and health upheavals caused by the global financial crisis that spanned 2007 to 2009, the global distress caused by the Ukraine and Middle East wars, and the economic fallout from COVID-19 that transformed the world. Moving on, Veblen’s comments are equally valid today. One observes how the ‘influencers’ of Instagram and TikTok mould the characteristics of Gen Z. The latter expect the latest iPhone, a perfect job, fine dining, drive EV cars, and wear the latest fashion. Veblen’s observation of such high-status members of the socio-economic class is identified by their consumption of over-priced brands of goods and services perceived to be of better quality and thus of a higher social class

What lessons are gained locally from Veblen’s philosophy? He discusses how the pursuit and possession of wealth corrupt human behaviour, triggering contemporary robber barons and home-grown oligarchs who own major assets (build extensive hotel towers on prime sites), all indulging themselves in economically unproductive practices of conspicuous consumption and leisure. Corruption and sleaze creep surreptitiously into public administration—unsung and unheard. The latter are vain activities that contribute neither to the economy nor to the material production of useful goods and services required for the unfettered functioning of society. Perhaps the most overt and ostentatious display of wealth by members of the leisure class was prevalent in the US during the famous “Gilded Age.” At the time, large mansions were built that served as the summer homes of the ultra-wealthy. It was a time of rapid economic growth, as American wages grew much higher than those in Europe, especially for skilled workers, and rapid industrialisation demanded increasing numbers of unskilled labourers.

Perhaps, as in Malta, in the past six years we have witnessed a deluge of low-wage immigrants. Therefore, thousands of immigrants—many from impoverished regions—poured into Malta, consequently contributing at a comparatively low cost to boost growth in GDP (this more than tripled in the past decade). GDP growth thus became more visible and contentious. Immigration from third-country nationals led to rapid growth in productive jobs, such as the rapid expansion of fast-food deliveries, construction jobs, health and home care services, drivers of public transport, and many other jobs such as the public collection of household waste; still, thousands work in some government agencies, all registered via muscled temping agencies.

Sociologically, the daily production system required low-wage workers to be diligent, efficient, and co-operative, whilst the owners of the leisure class concerned themselves solely with profits and vices. The latter distinguish themselves with public displays of exuberant luxury yachts, skiing holidays in the Swiss Alps, higher education of family members at foreign universities, and dining in Michelin restaurants. The development of Veblen's sociology of conspicuous consumption also identified the use of charity jamborees meant to enhance the reputation and social prestige of donors, while political opportunists associate themselves to improve their image among voters. In this example, the socio-economic practices of consumerism thrive upon conspicuous consumption

Both social media and other forms of mass media have widened the scope of conspicuous consumption and leisure. Today, social media, which is pervasive particularly in our urbanised world, manipulates a persistent need for acceptance. It is heartbreaking that every year a circus is made during charity jamborees, with organisers reminding us of human suffering in an effort to prick people’s conscience. Please donate more. Bloggers cautiously warn us about corruption, both proven and alleged. This gnaws at the very backbone of democracy and deters those who wish to progress honestly in political and public life. They warn us that conspicuous consumption has hit the island. In conclusion, in the spirit of Veblen’s notion of The Theory of the Leisure Class, good governance and true sustainability point towards a duty to cut hedonistic trends and inculcate virtue into society.